About

NEW YORK -- Jell-O has lost its jiggle and nobody knows how to fix it.

The dessert was invented more than a century ago and helped popularize a delicacy reserved for the rich into a quick, affordable treat. Americans of all ages are familiar with the famous "J-E-L-L-O" jingle and TV ads featuring comedian Bill Cosby. Knocking back Jell-O shots made with alcohol is a college memory for many.

Yet despite its enduring place in pop culture, sales have tumbled 19 percent in the past four years, with alternatives such as Greek yogurt surging in popularity. Executives at Kraft Foods (KRFT), which owns Jell-O, say they're confident they can revitalize the brand. But their efforts so far have been a disappointment.

After years of marketing sugar-free Jell-O to dieters, for instance, Kraft last year launched an ad campaign that switched back to playing up the family angle. In one TV spot called "Comb Over," a man with the title hairdo tells his son how Jell-O makes up for life's troubles, such as being stuck in traffic. The visual gag is when the child imagines himself going through life with a comb over.

"Kids thought it was hilarious," said Dan O'Leary, senior director of marketing for Kraft desserts.

Declining Sales

Unfortunately, it didn't get people in the mood to eat Jell-O. After showing signs of improvement for a couple years, Jell-O sales in the U.S. hit $932.5 million in 2009, reflecting box mixes and ready-to-eat cups of gelatins and puddings, according to market researcher Euromonitor International. But they've been declining ever since, and by last year, sales had seen a double-digit percentage drop to $753.8 million.

Part of the problem is that people have become more finicky about what they eat. They're increasingly seeking out foods they think are natural or wholesome, and Jell-O's bright reds, greens and blues may inadvertently serve as warning signals to moms about the artificial dyes they contain. The second ingredient listed for the Jell-O gelatin cups is also high-fructose corn syrup, a cheaper sugar substitute that more people are shunning.

Nutrition more broadly is another issue. Jell-O has long positioned itself as a lighter alternative to cakes and pies (as the slogan goes, "There's always room for Jell-O"). But the trend now is toward foods that claim some sort of benefit, such as protein and fiber.

Even for those who have fond memories of eating Jell-O, the problem is just that -- it's a treat associated with the past.

"It almost seems childish to cook it now," said Ted McGrath, a 34-year-old painter in New York City who thinks of Jell-O as being in the same category as Twinkies or fast food.

Ignored Brand

Kraft CEO Tony Vernon concedes Jell-O wasn't "getting the attention it deserved" as a storied brand. That's because the company for many years was preoccupied by more popular snacks, such as Oreo and Chips Ahoy cookies. But in late 2012, Kraft split into two companies and the newly formed Mondelez International (MDLZ) walked away with those higher-profile snacks.

Since the separation, Kraft has vowed to boost the performance of neglected brands such as Jell-O. None of the efforts so far have worked, but executives remain optimistic.

In a rapidly changing food culture, they see new opportunities. Those in their 20s and 30s, for instance, love expressing their creativity through cooking, yet also want the convenience of packaged foods, O'Leary notes.

So Kraft says it's encouraging people to get creative with Jell-O on social media sites such as Pinterest, Facebook and Instagram. By posting images of Jell-O creations, the company says others get inspired to share their own, such as an image of a red, white and blue Jell-O ring one follower posted on Facebook (FB) posted on July 4. It's also pushing new Jell-O molds, such as a line of university molds that allow people to make Jell-O in the shape of their school mascots.

A 'Rich' Dessert

In a way, the strategy traces back to Jell-O's roots in the early 1900s, when salesmen distributed free Jell-O recipe books in an effort to boost sales. The idea was to let everyday people make fancy Victorian desserts, such as the "Roman Sponge" a concoction made with maraschino cherries, whipped cream and walnuts.

Such dishes had been out of reach for many because they could be time consuming and require unappetizing ingredients such as fish bladders, said Lynne Belluscio, director of the LeRoy Historical Society in Le Roy, New York, where Jell-O was invented.

"Jellies were extremely elitist," Belluscio said. "In Europe, the economics of a family or its social standing could be judged on its pudding or jelly mold."

But Jell-O helped make those dishes accessible for everyone, she said.

Increased Competition

Today, there's a proliferation of sweets and snacks touting more pristine ingredients, such as Fage Greek yogurt and Kozy Shack puddings. But Jell-O can cling to one advantage: the nostalgia it evokes.

That's on display at the Jell-O Gallery in Le Roy, New York. The museum -- essentially a room in the town's historical society -- still gets between 10,000 to 13,000 visitors a year, according to Belluscio.

Admittedly, many of those visitors decide to pull over on a whim after spotting the sign on the New York State Thruway for the gallery. When a storm knocked down the sign one year, Belluscio said visits dropped dramatically.

Still, the Jell-O Gallery remains by far the star attraction in the building, beating out the transportation exhibit in the basement and the genealogy and history library on the main floor. And once people step inside, the memories come tumbling forth.

"It's really funny how many people come here and say, 'Oh man, I haven't had Jell-O in so long,' " Belluscio said.

The best deals of the week go to loyalty card users. These items often include what are known as "loss leaders" -- items sold at little or no profit for the store. Why do stores do this? To draw you into the store, with the hope that you'll pick up other items as you shop. Some stores also reward you for spending more. Safeway (SWY) and Stop & Shop offer discounts at partner gas stations. Deals are also advertised in the weekly circular, and you can scan those savings onto your smartphone through apps such as Spoofee.com or SundaySaver.com.

You might like to see and feel every apple or potato you put into your shopping cart, but you can save as much as 36 percent by buying bags of produce. The same is true for multipacks of grocery items such as soap, toilet paper, soda and yogurt, especially at stores such as Walmart (WMT) and Target (TGT).

Many popular deli meats and cheeses sliced fresh at the deli counter may cost less than the pre-packaged variety. SmartShop found the same brands (including Boars Head and Alpine Lace) as much as 30 percent cheaper at the deli counter. You also get to buy the exact amount you need, reducing potential waste.

These racks, usually found in the back of the store, include a hodgepodge of items marked down by as much as half. That's because there is an imperfection in the packaging or the item is being discontinued. Check the expiration date to make sure that you're not buying something that's been sitting on the shelf too long.

Several new subscription services rival Amazon.com's (AMZN) Subscribe & Save service. ShopSmart likes FamilyCircle.com, Plated.com and Target Subscriptions. FamilyCircle.com offers organic produce and seasonal items that can be shipped to your home weekly. It's only available in Washington state, Idaho, Alaska and San Francisco, but there are plans to expand. Plated.com provides measured ingredients to make a chef's recipe from scratch. Target offers household and personal care items at a 5 percent discount (10 percent for REDCard holders). It also offers food, even though the selection is limited. The best thing about them: membership is free.

Walmart and Target, the big players in this category, offer savings of up to 70 percent on toiletries, drugs and other items. A recent Consumer Reports survey ranked Target better for customer service, quality of perishable items and cleanliness, while Walmart came out slightly ahead on price. Both will price match items you find cheaper at other stores.

There may be a stigma to shopping at dollar stores, but if you can get past that you can find some real bargains. Many leading dollar stores have been increasing the number of food items they sell. Family Dollar Stores (FDO) -- which agreed this week to be acquired by Dollar Tree (DLTR -- recently added 400 food items. Savings of up to 28 percent can be found at dollar stores over supermarket prices.

Club membership is down, but Costco (COST), Sam's Club and others are still great places to save if -- and this is a big if -- you have the space to store bulk purchases. ShopSmart found savings of up to 63 percent on some items. It also gives high ratings to some of Costco's Kirkland brand, including its bacon, laundry detergent and toilet paper.

Most times it makes economic sense to buy the large size package of cereal, paper towels, etc. But there are some items that you get just as much bang for your buck on the medium size. Check the unit price. SmartShop found the medium size price is the same as the jumbo size for Cheerios, Hellman's mayonnaise and Skippy peanut butter, but go for the super size of Heinz ketchup and Folgers coffee.

Boxed gives you warehouse prices (and sizes) without paying a membership fee. Checkout 51 offers weekly specials on items such as Campbell's (CPB) soup or Prego sauces. You also get cash back for every $20 you spend. Flipp is great for checking store circulars for weekly specials. You can put items right onto your shopping list, and the app helps identify the best deals. All three of these apps work on Android and Apple (AAPL) phones and tablets.

Convenience stores and drug stores may be easy to run into and pick up some essentials, but you'll pay top dollar for that convenience. ShopSmart's price check found these stores consistently charged a lot more, often more than double the price at supermarkets, Target and Walmart on basics such as milk, bread and eggs. A half gallon of milk at 7-Eleven costs $3.12. Compare that to the average supermarket price of $2.30. And a loaf of whole wheat bread at CVS (CVS) cost $2.91. At a dollar store the same loaf costs -- yes, you guessed it -- $1

Increase your money and finance knowledge from home

Add a Comment

329 Comments

Filter by:

susankhorn

I hadn't made jello in years until this past week. I saw molds for logos for college teams in my local Wal-Mart. Since my daughter attends FSU, this was an easy purchase. It was really simple and quick to prepare. I boiled my water in the microwave and added it to the mix, stirred and poured into the molds and refrigerated. They are adorable, each tray took 1 box of jello and made 12 molds (2 reusable trays per box) and everyone loved them! It was so much easier than I remembered. Jello should do more promotions like this! I'm going back to purchase another box, so I can make more at a time.

Those people who say that they would eat jello but don't because it has cow hooves in it really should do their research and use their common sense. Besides the fact that people used to utilize the entire animal back in those days when it was a matter of survival and it's an edible product, perhaps you should read the labels of other foods that contain gelatin that you probably are feeding your faces with non the wiser such as some yogurt brands, marshmallows/marshmallow creams, ice cream, frozen yogurts, refrigerated dips, candies, some soft drinks... You might learn something...

People. Listen up. If we continue to vote for the wrong Government then it's going to get worse. They will change the food we eat and that's not right at all. It's our American freedom. It's Obama . He is destroying everyone of us. Please wake up and stop letting Obama walk all over us. It's time to put a stop to this fear . The Government is not doing anything to protect us at all. They are pourpously trying to create more problems and trying to change on how we eat. I'm so tired of living in fear of this country already. I'm already planning heading back home to the U.K. The U.S. needs to wake up and realize it. Thanks.

For the squeemish, yes gelatin is obtained in a bizarre and creepy process.BUt what NOBODY is remembering is, that we used to have to consume the whole animal to survive.That meant bones , cartilage, the whole nine yards.Did any one stop to think that the base of this product is the same as consuming joint relief compound tablets. Let Jell-o research or publish that this product helps joints and their sales might take a rebound. Doesn't anyone remember that if you have weak nails, you should add gelatin to your diet? Or has all that old knowledge been lost?

I agree, Martha! I was coming on to say the same thing! It is a pain in the ass to make Jello, but if they sell sugerfree Jello in the store already mixed with whipped cream, I promise to keep it in my house & between my hubby & I, one of us will eat some everyday!Just don't make it too sweet. I was served it at the hospital recently and it was sickeningly sweet. I couldn't eat it!

Part of the problem is that a LOT of people don't want to take the time to make it, they want something they can just dish out. The small cups of plain jello just aren't the same. Where I live, people still use Jello to make salads or desserts for dinners etc. Jello with fruit is still big.

C'mon y'all. it's easy 4 oz water and the balance vodka or rum. The kids will love it. Let it set up a little longer though. Some folk add liquors with coconut rum, Jaegermeister or other flavors. There's dozens of recipes on facebook or other web sources.